Downing Street has refused to clarify whether the newly appointed City Minister, Emma Reynolds, is permitted to make decisions about the UK’s dealings with China, amid growing concerns over potential conflicts of interest.
Reynolds was appointed by Prime Minister Sir Keir Starmer following the resignation of Tulip Siddiq, who stepped down under mounting scrutiny due to an anti-corruption investigation in Bangladesh.
Reynolds’ background has raised questions, particularly her previous role as a director of public affairs for TheCityUK, a banking trade group known for lobbying against restrictions on Chinese businesses.
When asked whether this necessitates her recusal from China-related decisions, the prime minister’s spokesman repeatedly declined to provide a clear answer.
The spokesman stated that Reynolds “brings a wealth of experience to the role” but added that the process for ministerial appointments would be “followed in the usual way.”
This issue arises as the UK government seeks to strengthen financial ties with China as part of its efforts to bolster economic growth. Siddiq, who served as Economic Secretary to the Treasury, had been set to join Chancellor Rachel Reeves on a key delegation to China last week but chose to remain in the UK to address allegations of corruption linked to her family.
Siddiq was named in an investigation claiming her family embezzled up to £3.9 billion from infrastructure spending in Bangladesh. Her aunt, former Bangladesh Prime Minister Sheikh Hasina, went into exile after being deposed last year.
Announcing her resignation on Tuesday, Siddiq stated that although she had been cleared of breaching the Ministerial Code by the government’s ethics adviser, she did not want to be a “distraction” to the government’s mission.
Her replacement, Emma Reynolds, returned to Parliament in July after a four-and-a-half-year break during which she served as chief lobbyist for TheCityUK.
According to Bloomberg, Reynolds was involved in lobbying the previous Conservative government to exclude China from the “enhanced tier” of the Foreign Influence Registration Scheme.
The enhanced tier, which represented the highest level of scrutiny, was intended to safeguard the UK political system from covert foreign influence. Although the scheme was passed into law by the former Conservative government, it was never implemented. The current Labour government has yet to bring it into effect.
TheCityUK had argued that including China in the enhanced tier would deter investment and generate negative publicity. Critics have since raised concerns over whether Reynolds’ prior lobbying activities might create conflicts of interest in her new ministerial role.
When questioned about these potential conflicts, the prime minister’s spokesman referred to the “established process for the management of [ministers’] interests” but declined to comment on whether Reynolds was currently “ring-fenced” from China-related decisions. He also stated that information regarding ministers’ declared interests is published quarterly.
Meanwhile, Conservative Shadow Chancellor Mel Stride criticised Sir Keir Starmer’s handling of Siddiq’s situation, suggesting she should have been removed earlier. Speaking to BBC Breakfast, Stride said,
“The government is now in a rather curious situation with her replacement in relation to China.”
The debate over Reynolds’ appointment adds to mounting scrutiny as the UK balances its push for closer financial ties with China against growing concerns over national security and foreign influence.
Faridah Abdulkadiri
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